Partnership launches market leading monthly income product for smokers

Partnership today launched the latest in its range of annuity products - a monthly income Purchased Life Annuity PLA targeted at smokers. It currently pays an average of 6.5% pa for 60 - 65 year-olds who have smoked a minimum of 10 cigarettes per day for at least 10 years, but for older ages the rate could be significantly more.

Philip Brown, Head of Retirement & Care Product Development at Partnership, says: "We launched this product specifically at the request of IFAs and their clients who have invested in our retirement annuity for smokers earlier in the year. Unlike the existing product, which can only be bought with the proceeds of an authorised pension scheme, the PLA is available to anyone with a lump sum to invest for income.

Products that guarantee income are more appropriate than ever in a world of volatile investment markets. As interest rates are projected to fall, it's clearly worth considering products such as this PLA since it provides a guaranteed rate of return for life. Plus, if you're concerned about inflation, payments can be escalated or linked to RPI."

Sample Rates

All quotations based on £50,000 with: no escalation; no guarantee period; no spouses benefit. Payable Monthly in Arrears. Full terms commission. Source: Partnership's rates on 12/09/08

Too many people don't have the right contents insurance Are you among them?

Moneyextra.com recommends you take independent financial advice before acting on any article

2008-09-30 16:14:34 © Moneyextra.com